Applicability of ST on Advocate -5

Page no : 2

Rinkal Bansal (proprietor) (57 Points)
Replied 21 September 2012

Thanks for sharing such information. But I have one query relating to this. If a business entity has turnover more than 10 lacs in last year (which is normally achieved) and he get the service of filing the return of income from advocate and pay Rs. 2,000/- for the same to him. Now in such case whether he has to approach ST Department and take SErvice Tax Registration as he is covered under Reverse Charge for the purpoose of paying Service Tax.

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CA Navin Jain (MANAGER (FINANCE & ACCOUNTS)) (11768 Points)
Replied 21 September 2012

YES, NEED TO GET REGISTRATION NO.

Ramesha.M (Accountant) (800 Points)
Replied 21 September 2012

Dear Navin Sir,

Thanks for sharing

Regards

Ramesha.m

(Guest)

Originally posted by : Rinkal Bansal
	Thanks for sharing such information. But I have one query relating to this. If a business entity has turnover more than 10 lacs in last year (which is normally achieved) and he get the service of filing the return of income from advocate and pay Rs. 2,000/- for the same to him. Now in such case whether he has to approach ST Department and take SErvice Tax Registration as he is covered under Reverse Charge for the purpoose of paying Service Tax.

Navinji, Thanks for the share.

In my opinion, Filing of income tax return by an advocate is not a legal service and hence ST is not applicable.

Legal service means any service provided in relation to advice, consultancy or assistance in any branch of law, in any manner and includes representational services before any court, tribunal or authority;

Contrary views are welcome.

Regards

Neha

Divya Agarwal (Sr. Account Officer) (437 Points)
Replied 27 September 2012

this is very clear artical on reverse charge thanks for sharing.... :)

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RAJU (LEARNER) (1089 Points)
Replied 27 September 2012

There is a stay on levy of service tax on legal services under reverse charge mechanism. The relevant details are as below;

Service Tax on Legal Services provided by advocate (whether individual or firm) to any business entity has been imposed vide the Finance Act, 2012 under reverse charge mechanism wherein service recipient is liable to deposit service tax on fees paid to advocates.

High Court of Delhi vide order dated 21.09.2012 has stayed the implementation of this amendment in a petition (W.P.(c) No. 5957/2012) led Mr. A.S.Chandhiok, Sr. Adv. with Mr. Ruchir Bhatia, Adv. for Delhi Tax Bar Association.

Next Hearing is scheduled to take place on 27.11.2012.